FSA for childcare?

[sawyerthedestroyer]

Anyone do this?

Good? Bad?

I'm thinking good, but I've never done any type of FSA/HCSA/etc before and wanted to make sure this is as easy as they're making it out to be or if it's a PITA.

[sofamonkey]

It's really not bad. We wait & put reimbursement requests in towards the end of the year & get a nice fat check.

[sawyerthedestroyer]

Dec 20, 2014 12:40:32 GMT -5 googled said:

Mine is really simple. We do it through WageWorks. I put in the dates of my childcare, I print a claim form, my DCP signs it, then I upload it to the site to complete the claim. A few days later the money is in my account.

We get $192 and some change taken out of each paycheck, which adds up to $5000 a year. You can fill out a claim form each paycheck or once a month, or however often you want to.

And from what I understand, we'll still get the child tax credit because we spend more than $5000 on childcare.

Oh awesome. Ours would be through wageworks, too.

[lemon]

Dec 20, 2014 12:40:32 GMT -5 googled said:

Mine is really simple. We do it through WageWorks. I put in the dates of my childcare, I print a claim form, my DCP signs it, then I upload it to the site to complete the claim. A few days later the money is in my account.

We get $192 and some change taken out of each paycheck, which adds up to $5000 a year. You can fill out a claim form each paycheck or once a month, or however often you want to.

And from what I understand, we'll still get the child tax credit because we spend more than $5000 on childcare.

But just so you're not surprised come tax time, that $5k you had taken out of your paycheck for dependent care FSA gets excluded from any sort of dependent care credit you file on your tax return.  I know the child tax credit is separate, and I think it's only calculated based on the number of children you have and your income.  If your income is over a certain threshold, they start phasing it out.

But yes, OP, for most people it is worth it to sign up for the dependent care FSA.  You don't pay taxes on that $5k, so for most people taking advantage of it that are in a higher tax bracket, it's worth it.

[Zoly]

Dec 20, 2014 12:40:32 GMT -5 googled said:

Mine is really simple. We do it through WageWorks. I put in the dates of my childcare, I print a claim form, my DCP signs it, then I upload it to the site to complete the claim. A few days later the money is in my account.

We get $192 and some change taken out of each paycheck, which adds up to $5000 a year. You can fill out a claim form each paycheck or once a month, or however often you want to.

And from what I understand, we'll still get the child tax credit because we spend more than $5000 on childcare.

Really? That would be awesome! This is our first full year of daycare and I thought we wouldn't be able to claim anything since we do the dependent care savings.

[escrow]

We did this this year. I did the $5k through my paycheck, DH didn't do any. I figure this way we are taking $5k off my taxable income right off the bat, then can hopefully claim some sort of something for the amount over $5k we paid. I am trying to decide if I should have him do this also but then we have to try to claim from two different places and sounds like more hassle than it is worth.

[CurlyQ284]

Dec 20, 2014 13:30:27 GMT -5 escrow said:

We did this this year. I did the $5k through my paycheck, DH didn't do any. I figure this way we are taking $5k off my taxable income right off the bat, then can hopefully claim some sort of something for the amount over $5k we paid. I am trying to decide if I should have him do this also but then we have to try to claim from two different places and sounds like more hassle than it is worth.

I think I looked into doing this but I'm pretty sure I found that both parents can't do it for the same kid or you can but it can't exceed $5k

www.practicalmoneyskills.com/personalfinance/lifeevents/benefits/dependentFSAs.php

[escrow]

Dec 20, 2014 13:38:32 GMT -5 CurlyQ284 said:

Dec 20, 2014 13:30:27 GMT -5 escrow said:

We did this this year. I did the $5k through my paycheck, DH didn't do any. I figure this way we are taking $5k off my taxable income right off the bat, then can hopefully claim some sort of something for the amount over $5k we paid. I am trying to decide if I should have him do this also but then we have to try to claim from two different places and sounds like more hassle than it is worth.

I think I looked into doing this but I'm pretty sure I found that both parents can't do it for the same kid or you can but it can't exceed $5k

www.practicalmoneyskills.com/personalfinance/lifeevents/benefits/dependentFSAs.php

Ah, thanks! 

[mrsfarmer]

How many kids in daycare? You can only claim for more than one child as fsa amount is deducted from tax credit amount.